Abstract: The apparatus of the invention is a water level probe comprised of a probe body, a sleeve having openings permitting fluid flow and encasing part of a magnetostrictive sensor, and an external housing encasing electronic circuitry for processing and transmitting the electric signal generated by the magnetostrictive sensor and sealing the circuitry from fluids. The sensor comprises a float slidably mounted on a rod, the float designed to float in water but sink in a petroleum product, thereby ensuring that it will float at the interface between the water and the product. The water level probe is used in the method of the invention to measure the depth of the water in a vessel storing hydrocarbon product at predetermined time intervals. The longitudinal angle of inclination of the vessel with respect of the horizon having previously been determined, the volume of water in the vessel is calculated from the depth measurements.